Finance procedure
Usually when a project is accepted for financing, aprofessional-quality Business Plan/Executive Summary is required and an official Letter of Request to Fund signed by a person who has been officially authorized by you�e your company's Board of Directors.
A) Is you Business Plan / Executive Summary complete? Is it at least 15 pages, preferably more? (60-100 is a good size for a full Business Plan, 15-20 is more suitable for an Executive Summary; always be thorough an complete!).
B) Did you include all financial projections, background information on your management team, cost estimates, descriptions of your product or project, time estimates for completion of construction, and any other relevant information for the Lender?
C) Did you provide official letters or documents to support your Security/Collateral? Evidence must prove that you have the Security or Collateral to guarantee the principal and the interest on the loan. If you have a standby letter/line of credit from a Top 100 bank equal to or greater than your loan request, that is the best of all; be sure to include all documentation that the guaranteeing bank will give you.
For Project Finance only ?Your Letter of Request to Fund must be complete, and signed by a person with legal authority to do so.
A) Did you state the exact amount you need?
B) Did you include a Corporate Board authorization statement, signed by the head of your company, which authorizes you to sign legally binding documents on behalf of your company?
C) Did you make sure that the Letter of Request to Fund is signed and that you've included your company's seal, or a Notary seal? Be sure it is on your own company's letterhead!
Borrowers who understand the importance of good documentation and good collateral, will almost always obtain good financing and excellent interest rates, no matter how large the loan is, and no matter what the purpose. It is essential that the borrower "think from the Lender's point of view." If you were a Lender, you would want to be absolutely sure that you would be repaid your money, even in the extremely rare or worst case of a disaster, bankruptcy, etc. by the borrower. Give the Lender maximum confidence and assurance that he will not lose his money by lending to you. He should feel comfortable with the lending of his money.
IN PRACTIVE, ONLY ORIGINAL BOUND COPIES OF BUSINESS PLANS ARE ACCEPTED
(No facsimiles or email copies are usually accepted in the market place)
Selection of the lenders depends on what kind of project you may have, the amount of money you are requesting and the risk factor associated with your venture.
No fees should be required by the facilitator until the deal is funded. The facilitator should be paid only when the loan is approved and funded. The facilitator or its agents should not collect any fees from clients.
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